Because Monopoly Firms Do Not Have to Compete with Other

question 213

Multiple Choice

Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often

• A)not in the best interest of society.
• B)one that fails to maximize total economic well-being.
• C)inefficient.
• D)All of the above are correct.

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Definitions:

Efficient

A state of productivity in which resources are used in the most cost-effective way without waste, achieving the highest possible output from a given input.

Equitable

Characterized by fairness or impartiality; just and right in considering the rights and responsibilities of all parties involved.

Efficiency

The extent to which resources are used optimally to achieve the desired output, often maximizing productivity while minimizing waste.

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.